The Philippine Rural Electric Cooperatives Association Inc. (Philreca) slammed the actions of lawmakers aggressively pushing for the passage of Senate Bill No. 2888 expanding the franchise area of the Davao Light and Power Company Inc. (DLPC) and effectively taking over the franchise areas of the Northern Davao Electric Cooperative, Inc, (NORDECO).
Philreca said in a statement over the weekend this is blatant disregard for the contributions and sacrifices of electric cooperatives over the decades and pose a serious threat to the long-term welfare of member-consumer-owners and the integrity of rural electrification in the Philippines.
“Allowing this proposed bill to proceed sets a dangerous precedent for the entire country. If private for-profit companies are freely granted franchises at the expense of electric cooperatives, this will accelerate the outright takeover of the entire power distribution sector, leaving consumers vulnerable to profit-driven interests. Electric cooperatives were established with a mission to provide service, not profit. Unlike private for-profit companies, they reinvest revenues into system improvements, expansion, and service reliability,” the group said.